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Transfer of Assets Abroad in 2024: Everything You Need to Know

Lacking trust in their local financial sector and facing political as well as economic instability, more and more people prefer to transfer abroad the assets they hold in their home country. Besides, they want to diversify risks and find profitable opportunities. These factors prompt owners of specific assets to consider how to securely and successfully transfer assets abroad. However, no matter how tempting the idea might seem, it has certain pitfalls. So, what do beginners need to know about the transfer of assets abroad in 2024 to experience no issues with it?

Transfer of assets abroad

Tips for beginners

Before they contemplate the transfer of assets abroad, owners should consider the possible risks of this decision. It is also a wise step to study the laws and regulations of the country where they are about to store funds.

Besides the transfer of assets risks per se, you should consider the following factors: 

  • Taxation: To avoid any unexpected outcomes, be sure to get acquainted with the tax laws of the country where you invest your assets. 
  • Needs and goals: You have to identify the reason for the transfer of assets. Is it to reduce political risks, protect your privacy and security, or find new investment opportunities?
  • Currency risks: You may face currency fluctuations or legal changes that are likely to affect the value of your assets.

When you transfer assets abroad and at any time thereafter, prioritize their security. In this regard, you may need to use the services of reliable financial institutions as well as trustworthy protection mechanisms.

Transfer your assets abroad: here’s how

To transfer assets abroad, you may use different tools. However, the choice of the best method will depend on the type of assets you have, the amount of assets you want to transfer, as well as your goals for transferring the assets.

Foreign bank accounts

People often open accounts in foreign banks to protect, shield, and increase their wealth. This is a popular and effective tool because it offers tax benefits, privacy, and diversification rolled into one.

Here are the advantages for account holders that foreign banks may offer today: 

  • Asset Preservation and Protection: You can reduce the risks from political or economic instability in your home country. The assets you want to protect are secure in foreign accounts even when there is financial turmoil back home.
  • Access to Various Currencies: Feel free to use multi-currency accounts to avoid currency risks and efficiently manage your international transactions.
  • International Investment Opportunities: With a foreign bank account, the holder thereof may access investment products like stocks, bonds, and funds that many foreign banks offer.
  • Unrestricted International Transactions: Even if you come from a sanctioned country, you can still transfer money abroad or make purchases without limitations, if you have a bank account overseas and a residence permit of any other state not subjected to sanctions.

In certain jurisdictions, your personal data is also protected by banking secrecy. 

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Offshore companies

People who want to transfer assets abroad and thereby protect them, often benefit from this tool. Here’s what advantages an offshore company offers to its owners:

  • Lawsuit Protection: By transferring your assets to an offshore company in a suitable jurisdiction, you will avoid asset seizure resulting from various legal claims or divorce cases.
  • Tax Savings: In certain jurisdictions, you can pay lower taxes or no tax at all if your company is not a resident there.
  • Estate Planning: With an offshore company, you will enjoy an opportunity to manage your estate according to your own wishes as the testator.

Apart from the above, this tool is useful for protecting assets from political risks and maintaining your confidentiality. 

Securities and offshore funds

Any beginners who contemplate the transfer of assets abroad may consider buying foreign stocks, bonds, and funds. 

Below, you will find some common ways to do this:

  • Buying shares of well-known foreign companies: You are welcome to buy securities from a broker on global exchanges. This transfer of assets abroad is a great way to protect and grow your capital with dividends.
  • Using American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs): These financial tools let foreign companies raise money on international markets. You can get them from a broker as well.
  • Investing in Exchange-Traded Funds: ETFs trade on stock markets and give you access to a diverse range of securities from foreign markets.
  • Exploring foreign hedge funds: When investing therein, you get an opportunity to use different strategies to manage risks and increase income. You may benefit from it if you qualify. 
  • Engaging in international mutual funds: This is how you can get access to shares, bonds, and other foreign company assets.

Brokerage accounts

With a brokerage account, individuals buy and hold stocks, bonds, and securities of both stock (a.k.a. equity) and mutual funds. The broker handles the purchase, sale, and storage of assets on behalf of their clients. NB: You are free to open a brokerage account with either a licensed bank or a brokerage firm.

Here’s what you can do with this tool:

  • trade on international financial markets
  • diversify your investment portfolios
  • reduce the risks related to specific industries or jurisdictions
  • discover appealing investment opportunities worldwide
  • make currency transactions.

To make better decisions, don’t hesitate to use professional support from a broker if you are just making your first steps in this field.

Overseas real estate

Your decision to purchase properties overseas has some obvious benefits:

  • New Visa and Migration Opportunities: In certain states, you can get citizenship or residency by investing in local real estate.
  • Reliable Inflation Protection: Real properties abroad have the potential to protect your money from inflation. In the future, their value may grow with the property market and living costs.
  • Additional Income Source: If you choose your overseas properties in a popular region carefully, you will be able to rent them out and make good money later on.
  • Estate Planning: This is an asset that may be used for estate planning purposes, and you can certainly pass it on to your children or any other heirs.

The transfer of assets abroad by means of purchasing real properties there opens new broad horizons for investors providing for the opportunities they never had back home. 

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